IN a significant demonstration of an employer and union working together to retain jobs in Australia, BlueScope Steel employees in Wollongong last week voted up an agreement which will deliver $200 million in costs savings needed to save the struggling Port Kembla steel plant.
In approving a Memorandum of Understanding (MoA) between BlueScope and the Australian Workers Union (AWU), employees agreed to a new three-year enterprise agreement that includes a wage freeze, changes to the payment of overtime and the suspension of a wages bonus scheme.
The MoA also included provisions for workplace restructuring which will see the removal of about 300 manufacturing jobs and 200 support and services roles.
It was agreed that consultations will take place concerning revised incentive measures to promote productivity and flexibility, while also taking into account BlueScope’s capacity to pay.
BlueScope managing director and CEO Paul O’Malley, congratulated Port Kembla employees, the management team, union leaders and the FWC on the agreement.
“The constructive agreement engagement by all parties has been outstanding,” Mr O’Malley said.
“This is a major step towards achieving the $200 million cost saving target. But we still have a lot of work to do in the coming weeks, as steel prices remain under pressure from the global steel glut.
“I feel that the positive vote from employees is a significant step change improvement in our workplace – one that will result in a more cost efficient and flexible steelworks.”
AWU Port Kembla secretary Wayne Phillips said workers had accepted ‘real pain and sacrifice’ in order to keep the Illawarra steel industry viable and challenged to NSW Government to use more local steel in infrastructure projects.
“Today was a vote as to whether or not the steelworks stays open or whether it shuts. It required courage for the result to go the way it did today. It’s a tough moment, no doubt, but I’m at least satisfied that workers have voted to fight another day,” Mr Phillips said.
“We simply can’t roll the dice and allow the steelworks to shut. But here’s our demand of the Baird Government: the workers here today have accepted very real pain – real sacrifice. So meet us halfway. Help support our jobs and back a Victoria-style local steel procurement plan.”
AREEA executive director – policy and public affairs, Scott Barklamb said the deal was a realistic response to challenges facing the sector.
“This may prove a significant outcome, providing a potential alternative to job losses where previously agreed cost structures simply cannot be sustained in light of market conditions,” he said.
“It also hopefully signals that more unions and employers can cooperate to retain jobs and the viability of operations.”
For more information or advice on this development or any other enterprise bargaining matter, contact your local AREEA office.
